Magnit · RUS:MGNT
Magnit — H1 2019 Earnings Presentation
17 slides from Magnit's earnings presentation, Aug 20, 2019
Slide 1: Investor Presentation: 1H 2019 Results
INVESTOR PRESENTATION 1H 2019 RESULTS published on August 20, 2019
Slide 2: Magnit at a Glance
Magnit at a Glance Magnit at a Glance As of June 30, 2019 3 354 Cities & Towns 19 884 Total Number 6 936 5 857 38 Selling Space Trucks DCs of Stores (thous.sq.m.) As of June 30, 2019 №1 Market Retailer in Russia Measured by Number of Stores & Geographical $7 bn Capitalization 9 % Share in Russian Gr
Slide 3: Geographical Coverage
Operational Overview Geographical Coverage 3 354 Cities & Towns 7 Federal Regions North Southern Central Volga North Urals Siberia Caucasus West 397 802 Convenience Stores 2 065 4 167 3 903 1 468 1 429 14 231 Supermarkets 19 124 85 126 33 55 24 466 269 Drogerie Stores 181 958 1 342 1 390 434 613 5 1
Slide 4: Logistics System
Operational Overview Logistics System 38 DCs 1 725 thous.sq.m. 19 884 Total Number 5 857 Trucks Warehousing Space of Stores Central 10 519 5 767 Centralization Ratio % Volga 10 476 6 019 1H2019 Future Targets Delivered from DC Southern 8 321 3 138 90 91 Delivered from supplier Urals 3 147 2 054 10 9
Slide 5: Suppliers
Operational Overview Suppliers Domestic 5 900 Suppliers 1 200 Federal Suppliers 4 700 Local Suppliers 55% 45% Assortment Source: Company, as of December 31, 2018 5
Slide 6: Direct Import and Private Label
Operational Overview Direct Import 7% International Open Direct Import (Annual Average) 850 Contracts Private Label 76% PL 714 8% Share Food M SKUs of Revenue Items Source: Company, as of December 31, 2018. 6
Slide 7: Employees
Operational Overview Employees 292 681 Employees 228 388 36 510 12 722 Regional 11 214 3 847 Distribution Head Office Other In-store Branches 1000 employees Average P 34 011 = Monthly Salary* Source: Company, as of September 30, 2019 *as of December 31, 2018 7
Slide 8: Convenience Store
Operational Overview Convenience Store Format Description Key Operational Statistics Opening Size of the Store Average Ticket Payback If Leased sq.m. 480 Total P 259 = sq.m. 336 Selling Space $4 3 years Traffic If Owned tickets/sq.m./day Sales Mix Food 2,3 4-6 years 88% Cost of New Store Non-food Sa
Slide 9: Supermarket
Operational Overview Supermarket Format Description Key Operational Statistics Opening Size of the Store Average Ticket Payback sq.m. 4 305 Total P 517 = sq.m. $8 6-9 years 2 016 Selling Space Traffic Cost of New Store tickets/sq.m./day per sq.m. of Total Space, thousand RUB Sales Mix Food 1,1 45 82
Slide 10: Drogerie Store
Operational Overview Drogerie Store Format Description Key Operational Statistics Opening Size of the Store Average Ticket Payback If Leased sq.m. 292 Total P 324 = sq.m. 233 Selling Space $5 3 years Traffic If Owned tickets/sq.m./day Sales Mix 0,8 4-6 years Non-food 100% Sales Density Cost of New S
Slide 11: Summary P&L
Financial Overview Summary P&L IAS 17* IFRS 16** RUB MN 1H 2018 1H 2019 Y-o-Y Growth 1H 2018 1H 2019 Y-o-Y Growth Net sales 595,263 657,917 10.5% 595,263 657,917 10.5% Cost of sales (448,196) (502,318) 12.1% (448,196) (502,318) 12.1% Gross profit 147,067 155,598 5.8% 147,067 155,598 5.8% Gross margi
Slide 12: Revenue & Costs
Financial Overview Revenue & Costs Revenue Dynamics Net Income Dynamics RUB bn Sales Growth, RUB RUB bn +10,5% -44,8% 18 595 658 658 LFL 10 +1,1% 4 1H2018 1H2019 1H2019 1H2018 1H2019 1H2019 IAS 17 IFRS 16 IAS 17 IFRS 16 SG&A Expense Structure 1H 2019 Margin Dynamics Revenue — 658 RUB bn in SG&A,% in
Slide 13: Gross Margin Bridge and EBITDA Margin Bridge
Financial Overview Gross Margin Bridge % of Sales 33 31 -106 b.p. 29 27 24,7 -1,3 23,7 23,7 25 0,3 23 21 19 17 15 GM 1H2018 Trading Margin Transport GM 1H2019 GM 1H2019 IAS 17 IFRS 16 EBITDA Margin Bridge % of Sales -95 b.p. 12 11,3 10 8 7,5 -1,1 -0,1 -0,1 -0,1 -0,1 0,0 0,4 6,6 6 4 2 0 EBITDA Gross
Slide 14: Free Cash Flow
Financial Overview Free Cash Flow RUB mn 1H2018 Working Capital Analysis 45 004 Average Days Payable to Suppliers is -16 443 41 Days. -4 892 -888 22 780 -21 883 1 540 2 437 -7 804 0 Inventory Management Days is 69 Days -10 241 Adjusted Change in Net Interest Taxes OCF Capex Other Cash FCF Payment of
Slide 15: Balance Sheet
Financial Overview Balance Sheet RUB MN 2018 1H2019 ASSETS Property plant and equipment 346,013 343,647 Right-of-use assets 285,969 308,555 Other non-current assets 37,653 40,214 Cash and cash equivalents 26,748 16,912 Inventories 187,779 199,040 Trade and other receivables 6,961 8,741 Advances paid
Slide 16: Capex Figures
Financial Overview Capex Figures Buildings: Complete & under Machinery & Equipment Other Assets Land Construction FY 2018 31 414 14 693 7 589 51 RUB 54 bn RUB 500 mn Source: IAS 17- based on Management accounts for 2018 16
Slide 17: Debt Burden
Financial Overview Debt Burden Debt Level Dynamics Credit Metrics Credit Profile RUB mn Net Debt Short-term Debt Long-term Debt % EBITDA / Finance Expenses The Company has 9,8 an Impeccable Credit History 10,0 198 313 Collaboration with 181 401 8,0 7,1 164 573 the Largest Banks 5,7 137 826 6,0 Debt